Stellantis bets on software to boost revenue

Jeep and Dodge-maker Stellantis is targeting about $22.57 billion of annual revenue by the end of the decade through selling software-led offerings and subscriptions related to the cars it makes. To achieve this target, the company plans to invest over €30 billion through 2025 to execute its software and electrification transformation.

As part of this strategy, the carmaker expects 34 million monetizable connected cars by 2030, with a majority of all new vehicles to be fully over-the-air updatable by 2024. Today, Stellantis has 12 million monetizable connected cars globally .

One revenue source that was discussed is insurance. In 2022, Stellantis will launch a usage-based insurance program offered through the captive finance arms in Europe and North America, with the intent to expand globally.

“Our electrification and software strategies will support the shift to become a sustainable mobility tech company to lead the pack, leveraging the associated business growth with over-the-air features and services and delivering the best experience to our customers. With the three all-new, AI-powered, technology platforms to arrive in 2024, deployed across the four STLA vehicle platforms, we will leverage the speed and agility associated with the decoupling of hardware and software cycles.” – Carlos Tavares, Stellantis CEO.

Bottom Line: A relevant read.